Exploring the use of managerial intuition in retail site selection

Abstract

ABSTRACTAlthough many researchers have noted the widespread adoption of managerial intuition in choosing retail sites, few empirical studies consider the construct and those that do tend to examine it in isolation. Here, intuition is investigated in conjunction with the more quantitative variables typically used to model site selection and it is found to make a significant contribution to the choice process. Data collected from 253 individuals responsible for leasing/real estate decisions in the U.S. retail sector were analyzed. Findings confirm the widespread use of intuition in making site selection decisions, but further indicate that decision-makers may not be fully attuned to their decision making process. Counter to prior research, the use of intuition in this study does not differ based on the size of the retailer or the experience level of the decision-maker. The theoretical and managerial implications of these findings are discussed and ideas for future research are explicated.